Business research news, tips, facts and sources from the Library research team at the London Business School Library.

08 July 2010

Mine 2010: Back to the Boom

PricewaterhouseCooper have just released their 7th annual review of global trends in the mining industry. Their reviews provide a comprehensive analysis of the financial performance and position of the global mining industry, as represented by the Top 40 mining companies by market capitalisation.

Last year the global mining industry experienced rapid recovery of market capitalisation lost in 2008. The market capitalisation of the Top 40 increased by 118% ($696 billion) reaching levels just short of the peak prior to the global financial crisis. The recovery has largely been driven by a sharp resurgence in commodity prices during the second half of 2009, the repair of damaged balance sheets, and an overall improved investment climate.

Despite the global economic crisis none of the Top 40 companies were subject to bankruptcy or voluntary administration provisions. PricewaterhouseCooper believe this is largely due to their ability to remove their debt overhang, strengthening commodity markets over the year and the positive impact of government stimulus packages around the world. Balance sheets were strengthened through a combined $103 billion of debt and equity financing obtained by the Top 40.